At a recent press conference on June 10, INB100, which represents EXO subgroup members CBX – Chen, Baekhyun, and Xiumin – accuses SM Entertainment of deception during contractual negotiations about the group EXO’s activities. The press event took place at Seoul’s Shilla Hotel and was presided over by INB100’s CEO Kim Dong-joon and Chairman Cha Ga-won.
The management company claims that SM Entertainment has not been truthful with the members of EXO-CBX about the details of their agreements.
Law Firm Lin’s Attorney Lee Jae-hak, representing INB100, remarked, “Following unsuccessful negotiations with SM last year, and consequent contract termination proceedings, CBX had reached an agreement with SM. However, SM reneged on their promise regarding the 5.5% album distribution rate. Moreover, they have sought to claim 10% of the artists’ revenue from individual ventures such as solo albums and endorsements. This demand is unreasonable, and we demand SM to stop seeking this 10% as they have not adhered to their part of the deal.”
INB100 alleges that CBX relied on SM’s guaranteed distribution rate and consented to the deal, despite it not being incorporated into the final contract. INB100 claims to have incontrovertible evidence of SM’s commitment, including recordings where SM’s COO Lee Sung-soo discusses the terms during the original negotiations.
INB100 outlines that CBX retracted complaints to the Fair Trade Commission and settled other legal issues based on the belief that SM would fulfill their promises.
“They even gave up substantial contractual payments for new deals. Baekhyun aimed to protect fellow artists’ rights through this sacrifice. When he learned that SM revised contracts with other artists, he felt his efforts were validated and worthwhile,” added Attorney Lee Jae-hak.
Concerning the demand on CBX to pay 10% of their independent activity earnings, Attorney Lee clarified, “One clause of the agreement stipulated that 10% from CBX’s own production sales are due as royalties. Despite SM breaking their promise of a lower distribution rate, they still claim 10% of CBX’s individual activity revenues. This is unjust because SM has no involvement in these projects. The 10% deal was only consented because SM agreed to a lower distribution rate.”
The lawyer further pressed SM to recognize their failure to comply with the distribution percentage and urged them to withdraw their demand for 10% of CBX’s solo earnings. Lee Jae-hak also insisted on being provided with comprehensive settlement details and evidence, which have been withheld by SM.
In conclusion, the representative stated, “It is the intent of CBX to audit the settlement records related to their prior exclusive contracts as was assured last year. If our demands go unmet, we will contemplate escalating to legal recourse”.
Source: Naver
Frequently Asked Questions
- What is EXO-CBX?
- EXO-CBX, also known as CBX, is a sub-unit of the South Korean boyband EXO, consisting of members Chen, Baekhyun, and Xiumin.
- What is the dispute between SM Entertainment and EXO-CBX?
- INB100 claims that SM Entertainment didn’t honor the agreed 5.5% album distribution rate for EXO-CBX and unjustly sought 10% of the group members’ solo ventures revenue despite reneging on their deal.
- What was the promise made by SM Entertainment to EXO-CBX?
- SM Entertainment promised a 5.5% distribution rate for albums to EXO-CBX, which was not officially documented, but INB100 claims to have evidence supporting the agreement, including a recording of the negotiation.
- Has SM Entertainment responded to these allegations?
- As of the information provided, SM Entertainment has not publicly responded to the allegations made by INN100 regarding the dispute with EXO-CBX.
- What action might EXO-CBX take if their demands are not met?
- EXO-CBX, through their representative, stated that if their demands for a proper settlement and an end to SM Entertainment’s 10% revenue claim aren’t met, they will consider taking legal action.
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